At the turn of this decade, there were many reports which projected the Gulf Cooperation Council (GCC) economy will become the sixth largest in the world by 2025. It does seem these expectations could come true even ahead of schedule due to the rapid development these economies have been putting on, by capitalising on the optimum pricing level oil had been maintaining for an extended period.

The recent growth rates the GCC economies have catapulted them into the same echelons of a China or an India. It is expected the GCC’s combined GDP will grow by 4.2 per cent this year to $1.7 trillion, compared with the $1.65 trillion clocked last year and ranked 12th globally.

This growth encompasses all of the six economies making up the grouping, despite marginal differences in the rate at which they are growing. This means the Gulf states are heading consistently and collectively into a new stage of development.

There are some approaches that will support GCC aspirations to be among the world’s Top 10 economies by 2020, the first of which would be to set off a further round of massive inflow of investments, from both local and foreign investors. They will get to see further investment opportunities in GCC’s industrial and real estate sectors and the financial services industry.

This process received a boost by the MSCI’s decision to upgrade the UAE and Qatar markets to emerging markets status, and the opening up of the Saudi Arabian market to foreign investors ahead of a future status upgrade in the next phase.

It is expected that some GCC-wide agreements will now be fully implemented, such as the complete implementation of the Customs Union by early next year. Keep in mind it is just three months from now. This will provide fresh investment opportunities and allow for the freedom of movement of goods and the establishment of joint ventures involving Gulf capital.

In addition, these approaches will be accompanied by a wave of new projects to strengthen the Gulf’s infrastructure by linking components in each Gulf State with the internal infrastructure in member state. That would include the completion of the Gulf’s rail network by 2018 and the rollout of new roads linking the countries. There will be a new causeway between Saudi Arabia and Bahrain and possibly one between Bahrain and Qatar.

On its part, the GCC’s private sector will use these developments to strengthen its role and increase its share as a component of GDP by developing the non-oil sectors. This will include building investment partnerships, both with foreign capital sources or with the public sector within the GCC.

Oil price stability accompanied by increased production, by the likes of the UAE, Saudi Arabia and Kuwait, could catapult it to be among the top six economies in the world and that too even before 2025.

The GCC’s progress will happen despite the prevailing headwinds of turbulence and instability in the region. Moreover, the aftermath of the global crisis has not completely abated yet.

To chalk out a growth strategy even in such an environment reflects boldness and confidence in achieving the economic agenda regardless of the intricacies of the geopolitical situation. Highlighting UAE’s limitless ambitions, His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, had said earlier, “If we listened to the views about surrounding concerns we would have remained in place throughout the period of the Gulf War, the Iran-Iraq War, the invasion of Kuwait and the US war on Iraq.”

In fact, in these particular years, the UAE had singular achievements and succeeded in turning itself into a global economic hub. Going forward, the anticipated progress by the Gulf states will have political and strategic consequences that will lead to the bloc assuming a role in global alliances commensurate with its economic might.